Title: Chainlink SVR: Recapturing Liquidation MEV for DeFi Apps
Chainlink SVR is a groundbreaking oracle solution that enables DeFi applications to recapture the Maximal Extractable Value (MEV) derived from their use of Chainlink Price Feeds. This innovative technology, developed in collaboration with BGD Labs, Flashbots, and the Aave Chan Initiative, is set to revolutionize the DeFi space by returning previously leaked revenue back to DeFi protocols and oracle infrastructure.
The integration of Chainlink SVR on Ethereum Mainnet marks a significant milestone in the DeFi ecosystem. By recapturing oracle-related MEV using a combination of Chainlink oracle networks and Flashbots’ MEV-Share service, DeFi apps can now reclaim their share of the revenue generated from liquidations within lending protocols. This integration not only increases revenue for DeFi protocols but also creates sustainable economics for both DeFi protocols and oracle infrastructure.
Aave has taken the lead in integrating Chainlink SVR to recapture liquidation MEV, starting with markets such as tBTC, LBTC, AAVE, and LINK, with plans to expand to additional markets in the future. The recaptured revenue will be split between the Aave and Chainlink communities, with an initial discounted rate of 65% to the Aave ecosystem and 35% to the Chainlink ecosystem.
Chainlink SVR is also the first Chainlink service to be connected to Payment Abstraction, a cross-chain enabled payment system that reduces payment friction in the Chainlink Network. This integration allows service fees to be automatically converted into LINK using Chainlink services and a decentralized exchange, benefiting Chainlink Network service providers.
The partnership between Chainlink and Aave has been instrumental in shaping the DeFi industry, with Chainlink SVR being a testament to their continued innovation and collaboration. The future upgrade of Chainlink SVR will feature increased decentralization, enhanced gas efficiency, cross-chain capabilities, and more, further solidifying its position as a game-changer in the DeFi space.
In conclusion, Chainlink SVR is a game-changing technology that is set to reshape the DeFi landscape by recapturing liquidation MEV and returning it to DeFi apps in a secure, efficient, and transparent manner. This innovative solution not only increases revenue for DeFi protocols but also strengthens the overall DeFi ecosystem. Stay tuned for more updates on Chainlink SVR and its impact on the DeFi industry.
